The Financial Intelligence Unit-India has imposed a monetary penalty of Rs 5.49 crore on Paytm Payments Bank Ltd., according to a press release.
The penalty has been imposed for violations of the bank’s obligations under the Prevention of Money Laundering Act, 2002.
Based on a review of Paytm Payments Bank after receiving information from law enforcement agencies, FIU-IND found discrepancies in operations.
It observed that the bank engaged in a number of illegal acts, including organising and facilitating online gambling.
Further, the money generated from these illegal operations, that is, the proceeds of crime, was routed and channelled through bank accounts maintained by these entities with Paytm Payments Bank Ltd.